It looks almost all the current liabilities will be reclassified to non-current liabilities on coming quarters

Just got this from BA annual audited account:

FINANCIAL AND CAPITAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)

Liquidity risk

As at 31 December 2018, the Group’s current liabilities exceeded its current assets by RM6,092.7million due to the following:

(i) Non-current borrowings for AKPL of RM1,782.9 million remains classified in current liabilities due to existing non-compliances by AKPL under this loan, in particular the Armada Kraken FPSO project not achieving final acceptance by the scheduled date, where project lenders currently have the right to issue, but have-to-date not issued, a notice for full prepayment of the loan. Thus, AKPL did not have an unconditional right to defer payment of the non-current
borrowings for at least 12 months after the balance sheet date.

In view that the Armada Kraken FPSO has achieved final acceptance in September 2018, the Group is currently in discussion with project lenders to remove the risk of having to prepay the loan as a result of existing non-compliances by AKPL. The Group expects to alleviate such risk in 2019.

(ii) Reclassification of Sukuk Murabahah of RM1,499.4 million from non-current liabilities to current liabilities, as the Group has not met the financial covenant of net debt over earnings
before interest, taxation, depreciation and amortisation (“EBITDA”) for the financial year ended 31 December 2018. This is mainly because the computation includes non-cash impairment expenses recognised during the year.

In April 2019, the Group received a waiver on the covenant breach from the Sukuk holders. Accordingly, the current liabilities will be reclassified to non-current liabilities in 2019.

(iii) Current secured term loan of AFGSML bridge loan amounting to RM186.5 million (USD45.0 million) is classified as current liabilities, which is intended to be refinanced via long term
financing. The lender had previously reserved the right to issue a cancellation notice for full repayment of the loan, and extended the repayment date from 28 February 2019 to 12 April 2019.

In April 2019, the lender waived its right to issue a cancellation notice for full repayment of the loan and also further extended the repayment date of the loan from 12 April 2019 to 11 October 2019.
The Group has identified alternatives to refinance the secured bridge loan via long term financing. As the asset involved is in a long term secured charter with strong operational performance, the Directors believe that there is a high likelihood of securing alternative
financing.

(iv) The unsecured term loans with a carrying amount of RM1,578.0 million due within 12 months from the balance sheet date are classified as current liabilities. The Group has not met the
financial covenant of net debt over EBITDA for the financial year ended 31 December 2018.

(v) The revolving credit facilities of RM1,246.9 million are due within 12 months from the balance sheet date and are classified as current liabilities.

In April 2019, the Group signed a facility agreement to refinance the unsecured term loans and revolving credit facilities referred to in (iv) and (v) above (the “Facility Agreement”). The salient terms
of the new unsecured term loans (the “Loans”) are as follows:
(i) The Loans comprise a Tranche 1 facility of USD260.0 million and a Tranche 2 facility of USD400.0 million repayable over 24 months and 60 months respectively, from the closing date of the Facility Agreement;

(ii) The OMS business together with certain FPO vessels which are idle will be disposed of assuming commercially acceptable sale terms can be obtained;

(iii) Surplus funds from operations and part of the proceeds, from certain strategic initiatives including monetisation of assets and new project financing will be used to repay the Loans;
and

(iv) Closing date of the Facility Agreement is subject to the satisfaction of certain conditions precedent which are procedural in nature and include approval from the central bank, the
execution of certain documents, certificates, resolutions, and legal opinions.

Based on the cash flow forecast for the next 12 months from the date of approval of the financial
statements, the Group’s obligations are expected to be funded by available cash balances and cash
flows from the Group’s existing vessel charter contracts and proceeds from asset monetisation of
non-core assets which is expected to generate positive cash flows. The Group also expects
distribution from joint ventures.

https://www.thestar.com.my/business/business-news/2019/03/07/sabah-to-get-rm13bil-investment-at-industry-cluster-in-lahad-datu/

http://www.dailyexpress.com.my/news/134375/rm20b-investments-on-the-cards/


Total 33bil FDI into Sabah... sure booming the Sabah's economic and trade activities and therefore:

business to Suria

https://www.malaymail.com/news/malaysia/2019/04/10/minister-six-states-approved-water-rate-hikes-two-more-soon/1741673

Should announce tariff hike very soon...

Must not forget Muiind too... The group is currently actively disposing assets after Andrew Khoo took over.... wonder they will sell the lands at Bandar Springhill and distribute...

Push harder please....

https://www.bloomberg.com/news/articles/2019-03-25/billionaire-krishnan-is-said-to-near-500-million-loan-deal

Getting contract soon?

go! go! go!

http://www.morningstar.co.uk/uk/news/AN_1551001614690604800/press-laura-ashley-gets-takeover-bid-from-michael-flacks---telegraph.aspx

Keep on selling... now Laura Ashley turn.... when will turn to Ampang assets?

OMG.... where is d dividend?

https://www.thecaterer.com/articles/546978/countrywide-hotels-acquires-laura-ashley-the-manor-hotel

Selling more and more assets.... turning to profit very soon

https://www.malaymail.com/s/1710662/cm-says-penang-water-rates-may-rise-following-national-review

Profit will up again with this.... likely to be double digit increase for Penang...
Penang 0.32/1,000 liters VS 0.69/1,000 liters national average...

https://www.thestar.com.my/news/nation/2019/01/07/pasir-gudang-to-be-upgraded-to-city-status-says-mb/

Lands become more valuable now

Anyone know how much we are getting back??

http://www.theedgemarkets.com/article/muis-new-chairman-if-it-makes-sense-sell-assets-well-do-it

Annual Report

The restructuring will take about 2 yrs, to transform the group into profitable and hopefully to pay dividend

Attended agm yesterday... suggested Andrew to make announcement on assets disposal to keep market well inform about the group restructuring progress, no matter small or big, instead of just put in AR. He agreed and think they will make it happen.

Btw, anyone at egm today?

They need to get approval from shareholders on today agm, once egm done, you will get your money likely in another 3 months time

AK just do nothing? Or nothing he can do...

Some people shld knw some bad bad news coming, selling ahead...

Whole management team must get sack!!!

oooiiiiii......

AK pls do something....

A transmile case??

And it is damn negative news

Really cant figure out why the sellers so fear, unless they knw something we dun knw

bloody hell......

Why the maintenance cost on Nov 2017 due to the flood was charge this Q??

still nothing...

EGM gone tru??

anyone attend the egm?

Wats happen?? Price shoot up...

THE federal government is in full gear to revive the proposed water industry restructuring in all states nationwide, which has been in a stalemate for nearly two decades.

Water, Land and Natural Resources Minister Dr Xavier Jayakumar said efforts are underway to proceed with the multi-layered plan to consolidate state water assets under one roof.

“The water industry restructuring is done for a better control of the water industry and tariffs in the country.

“Basically, it (industry restructuring) is happening. Some states are a bit delayed in terms of going ahead with the water transfer, but I think we will achieve it in the end,” he told the media in Parliament yesterday.

Xavier said he has been leading meetings with several states to discuss the water industry’s restructuring and explain the benefits for the state governments to take up the offers dished out by Pengurusan Aset Air Bhd (PAAB).

“It is better for the states to take the offer because PAAB gives a very good rate, so it doesn’t really bite into the financial movement in the state. The payback period is long and it is within the margin,” he added.

https://themalaysianreserve.com/2018/11/02/post-selangor-nationwide-water-sector-shake-up-next/

Is this means Federal Government want to take over all the water assets in Malaysia??

Bumi Armada set to win Karoon FPSO tender
Malaysian contractor emerges as preferred bidder to supply floater for dual-field development in Brazil
Xu Yihe
Singapore
25 Oct 2018 22:00 GMT
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Malaysian oilfield services contractor Bumi Armada is in pole position to win a floating production, storage and offloading vessel tender for Australian independent Karoon Gas's Neon and Goia (formerly Echidna and Kangaroo) field developments in Brazil's Santos basin.

Industry officials said that as other bidders including Modec International, SBM Offshore, BW Offshore and Bluewater have walked away from talks with Karoon due to price concerns, Bumi Armada has emerged as the sole preferred bidder due to similar pricing ideas.

They added that Bumi Amada has offered a price tag quite close to Karoon’s budget, though there are small differences to be ironed out.
While Burmi Amada has outbid its rivals, with the award of the contract expected over the next couple of months, some project observers are concerned about Karoon’s financing capability.

Sources said Karoon is looking for partners to share the risk and cost of the Neon development while it is working on the development plan.
“It is Karoon’s intention to farm out a portion of its interest before proceeding with the Neon development,” Karoon said in its latest annual report.

Bumi is working with Schlumberger and Subsea 7 as a consortium to jointly bid for the contract, where the former will focus on provision of the FPSO, while the latter will look after the subsea infrastructure of the project.

Karoon is looking for a unit with capacity of about 40,000 barrels per day that will not require much conversion to tackle the light 39 degrees API oil at Neon, with operations at Goia starting at a later date.

Karoon is offering a five-year firm charter agreement, with two options for three years each. Once the contract is awarded, Bumi will retrofit its floater Armada Claire to the Brazilian standard.

The Armada Claire, with production capacity of 30,000 barrels per day and storage capacity of 1 million barrels, has been moored in Batam, Indonesia since 2016 following a two-year stint for Woodside Petroleum in Australia.

The floater had been on contract since August 2014 under a four-year fixed charter with extension options. However, in March 2016, Woodside unexpectedly issued a notice of termination to Bumi for the Armada Claire working on the Balnaves oilfield off Western Australia.

Bumi is surveying yards in China to find one capable of re-tooling the Armada Claire, for which the metering skid and mooring system need to be re-modified.

The design concept for Neon would see infrastructure in place capable of producing up to 28,000 bpd from two extended horizontal oil-producing wells and one gas injection well, with Goia being treated as a second-phase option.

The company aims to achieve a cost-effective solution with expected target operation expenses of about $18 to $25 per barrel.
First oil is expected early in the next decade, with potential to target peak production of approximately 25,000 to 28,000 bpd.
Karoon estimates Neon has proven plus probable contingent resources of 55 million barrels of oil, and Goia 27 million barrels.

Very attractive price for those who understand the value of Armada's assets, i think TAK is considering to take over or increase his stake now

I think Author do not understand what is value investing...

But no good yield =(

If i use PBA's 2018 estimated earnings which should be around 50-55 mil p.a or 15-16.5 sen, PBA has also about the same PE as Ranhill at 7-8 times...which also be DEEPLY UNDERVALUED

Ranhill was given a TP of 1.15 by MIDF with 10 sen of 2019 estimated earning, saying 7.6 times PE is deeply undervalued, compare to PBA and utilities sector of average 11 times.

Please privatized!!!

Earnings and cash all go to CAPEX...

http://www.theedgemarkets.com/article/vizione-bags-rm90m-job-build-submarine-pipelines-penang

Another 90mil gone... minority get squeezed again...

@mikekim, which house is d one calling TP0.95??

open 4.02pm, show start soon...

Yes... suspended

BA should make announcement soon.